Profits from Club sale

SallyFitz

Hello everyone.

I am a member of a non profit sports club which decided to sell their land. Each full member will receive an equal share of the overall sale.

We could potentially get £40,000 each.

Can you inform me of the best way to 'declare' this to the tax office and the best way to maximise my share of the money.

Many thanks for your help.

xylophone

http://www.golfclubmanagement.net/2012/03/will-members-receive-a-windfall-if-they-sell-their-club/
might be of interest - it looks as though the members will have to seek (and pay for) professional advice?

SallyFitz

Thank you Xylophone. Much appreciated.

chrismac1

Depending on the timescales going for CASC status could be a shrewd move, clearly not if the sale is imminent but with these deals there is often many a slip twixt cup and lip.

It's important to go carefully with the CASC application if you go for it, and most clubds which have "always operated this way" find they need to alter their constitutions.

A local sports club committee came to me for advice on applying for CASC status and there was not that much in the rules of the club that needed to be changed. Financially it was a no-brainer and some of the risky ways they were operating "because we've always done it like that" with regard to VAT would have disappeared.

But the vote went down, as all the older members turned up en masse to keep things "like they've always been". The Treasurer then resigned as he felt the personal liability he was running was unacceptable in the face of the desire of the membership not to make any changes to reduce this.